The document discusses strategies for telecom operators to profit from machine-to-machine (M2M) communications by focusing on high-value opportunities through application segmentation, addressing barriers in the fragmented M2M ecosystem, and exploring business models that support massive scale, flexible billing, and multi-party value chains. It also examines internal factors like cost structures and platforms that influence M2M profitability.
1. M2M Communications
Turn Potential into Profit
Camille Mendler Catherine Lynch
Principal Analyst Senior Director
Informa SAP Next-Gen Billing
Webinar: February 21, 2012
11. Revenue capture in the value chain is complex
Presentation
Comm. Middleware
Network Network Integration
Sensor Device & Apps
Machine Enterprise
Vendors Vendors Service Service Service System
Providers Providers Providers Integrators
€ €
$ €
€ £
$ Resellers & Solution Providers
Source: SAP
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16. M2M intelligence matters
Example: Motorway tolls for subscribers
– Autoroutes Paris-Rhin-Rhône
• Management of "Liber-T" On Board Units
• For individuals and enterprise fleets
• Flexible discounts:
• Volume based, time based, location based
• Recurring fee, one shot fees, for fleets
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25. Let’s review M2M business models & challenges
• Flexible platform with low ongoing cost of ownership
Low-cost model • Scalable platform to scale for high volume
• Low ARPU unit value
• Reduce operational costs
Massive scale • Support mix of recurring & usage based micro payments
• High volume billing & high availability architecture
• Handle settlement & commission for complex value chains
Multi-party • Support retail & wholesale pricing models
• Global support
value chain • Analytics promote greater efficiency
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29. Thank you!
Camille Mendler
camille.mendler@informa.com
For more M2M market intelligence, contact:
EMEA Asia
Jamie Moss Charles Moon
jamie.moss@informa.com charles.moon@informa.com
Sheridan Nye
sheridan.nye@informa.com
Latin America North America
Marceli Passoni Andy Castonguay
marceli.passoni@informa.com andy.castonguay@informa.com
30. SAP Next-Gen Billing: Run better M2M services
• Supports flexible pricing for retail and wholesale
models
• Support for end to end service management
• Low cost platform for high volume, low value
transactions
• Handles complexity in partner settlement
• Leverage analytics to interpret data & sell « greater
efficiency »
For more information, contact: catherine.lynch01@sap.com